IDC Estimates the Top 10 eMarketplace Services Firms Account for Almost Half of the Market’s Revenues

FRAMINGHAM, MA – APRIL 11, 2001 – The top 10 emarketplace service firms control 47% of the market, according to IDC. In a new bulletin, the global market intelligence and advisory firm ranks the leading firms by revenue. The list is led by PricewaterhouseCoopers, IBM Global Services, and Cap Gemini Ernst and Young.

 

"The top players in the worldwide emarketplace services market ascended to their leading positions on the strength of the market’s focus on buyer-driven emarketplaces and their connection to supply chain services," said Leo Lipis, Ph.D., a senior analyst in IDC’s eMarketplace Services program.

IDC believes service firms beyond the top 10 will have an opportunity to increase their revenue share as the market turns its attention toward small and medium-sized businesses (SMB) and markets outside North America. "Many of the firms in the top 10 have experience working with larger companies but are not well-versed in serving the SMB market, and history suggests moving down market is extremely difficult in an IT solutions market," Lipis said. "A middle tier of players that dedicate themselves to serving the needs of SMBs will emerge. Additionally, the top 10 are less dominant outside North American markets, and these markets will become increasingly important."

North America represents the largest region for emarketplace services, but other parts of the world will increase their spending significantly faster. IDC estimates emarketplace services revenue in North America will increase at a compound annual growth rate (CAGR) of less than 20% through 2005. In comparison, Asia/Pacific and Western Europe will each earn CAGRs of over 50%.

"Leading firms in the future will have to have global reach, business process expertise, supply chain expertise, and most important, the nimbleness to be responsive to rapid market developments," Lipis said.

IDC’s bulletin The Top10 Worldwide eMarketplace Service Providers (IDC #B24309) rates the top 10 vendors in the emarketplace services market and discusses what has made them dominant. To purchase this bulletin, contact Jim Nagle at 1-800-343-4952, extension 4549, or at jnagle@idc.com.

About IDC

IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 700 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at http://www.idc.com.

IDC is a division of IDG, the world's leading IT media, research and exposition company.

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